WPI inflation soars to 5.25 percent in January, sees fuel price rise

New Delhi [India], Feb 14 (ANI): The Wholesale inflation on Tuesday shot up to a 30-month high of 5.25 percent in January as rising global crude oil prices spiked domestic fuel cost, even as food prices moderated. Earlier in December, the wholesale price index (WPI) based inflation reflected 3.39 percent. However, in January 2016, the print was (-)1.07 percent. The last comparable high level of WPI was witnessed in July 2014 at 5.41 percent. As per Commerce Ministry data, inflation in the 'fuel and power' basket more than doubled to 18.14 percent in January, up from 8.65 percent in the previous month. Inflation in diesel and petrol shot up to 31.10 percent and 15.66 percent during the month. It added that the oil prices have been on rise since OPEC in early December decided to cut output for the first time in eight years. Also, it said that the spot LNG prices have also risen from USD 5.25 to about USD nine per MMBTU on winter heating requirements. Liquefied natural gas (LNG) is used for power generation. As per the data, food inflation basket witnessed contraction for the second month in a row with inflation at (-)0.56 percent in January as against (-)0.70 percent in December. The inflation in vegetables witnessed (-)32.32 percent in January, saw deflationary pressure for the fifth consecutive month. This was helped by a substantial price fall in onions, which stood at (-)28.86 percent. Further, the pulse inflation moderated to 6.21 percent, from 18.12 percent in December. Potato prices recorded sharp fall at (-)0.20 percent, from 26.42 percent in the previous month. Rate of price increase in egg, meat and fish was 3.59 percent during January. Inflation in manufactured items saw some uptick at 3.99 percent compared with 3.67 percent in December. (ANI)